Raymond James analyst Patrick O'Shaughnessy started Tradeweb Markets with a Market Perform rating saying the company is "attractive" but trades at a "premium" valuation. In a research note to investors, the analyst says he believes the company can sustain mid-to-high single-digit revenue growth while also generating positive operating leverage due to a relatively fixed cost base, but feels that Tradeweb's current valuation offers limited upside for investors. O'Shaughnessy says he prefers to remain on the sidelines waiting for a more attractive entry point.

Sees adjusted expenses: $755 - 805M, trending toward top end of range; Acquisition and Refinitiv Transaction related depreciation and amortization expense: $142M; Assumed non-GAAP tax rate: ~ 24.5% - 25.5% Cash costs of non-acquisition capital expenditures and capitalized software development: $75 - 83M LSEG Market Data Contract Revenue: ~$80M or ~$90M in 2025.

Reports Q1 revenue $408.7M, consensus $411.33M. Reports $1.9 T average daily volume ADV for the quarter, an increase of 39.1% compared to prior year period; quarterly ADV records in fully electronic U.S. High Grade credit, U.S. government bonds, European government bonds, swaps/swaptions = 1-year, European credit, U.S. ETFs, equity convertibles/swaps/options, global repurchase agreements; record 17.6% share of fully electronic U.S. High Grade TRACE..."We had a very strong start to 2024, continuing last year's momentum thanks to broad-based organic growth and a number of important milestones. Our quarterly ADV climbed 39% from the prior year period to a record $1.9 trillion, with several more ADV records set across rates, credit, equities and money markets. Tradeweb captured a record 17.6% share of U.S. High Grade TRACE reflecting steady growth in an area of strategic focus and investment for us. In January, we finalized our acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for U.S. Treasuries and interest rate futures, and we feel great about how this will strengthen our offering with macro hedge funds. In April, we agreed to acquire ICD, a leading institutional investment technology provider for corporate treasury organizations, which will add Corporates as a new client channel with significant cross-sell opportunities. We also recently celebrated the five-year anniversary of Tradeweb's IPO, and we remain laser-focused on keeping continued innovation and collaboration at the heart of Tradeweb's success. Now more than ever, we believe the future of trading is multi-asset class -- and innovative technology is how markets are going to get there."